Marijuana Legalization Has Lit Up These Stocks

By Ben Levisohn

High times are here in Colorado and Washington State, and since we’re an investing blog, we might as well consider: Is it possible to play the legalization of marijuana?

Benjamin Rasmussen

Yes, according to this article from Agence France Presse–and investors already are. They report:

Stocks of companies involved in the marijuana industry — medical or otherwise — hit fresh highs Thursday after Colorado launched the first legal US sale of recreational pot.

Investors took the huge lines outside pot retailers in Colorado as a harbinger of potential growth in the still-new industry.

With one study predicting a $10 billion a year industry by 2018, hopes are that the legalization of private cannabis use could eventually divert the fortunes reaped by illicit growers and traffickers to shareholders.

But, as the Huffington Post points out, most of the companies that stand to benefit are very small–they make micro caps look big–trade over the counter–good bye liquidity. That includes transaction-processing company MediSwipe (MWIPD), GreenGro Technologies (GRNH) Medbox (MDBX), which makes dispenser for high-risk drugs, and GW Pharmaceuticals (GWPRF).

Shares of Mediswipe have gained 88% during the past month of trading, while GreenGro Technologies has advanced 211%, Medibox has advanced 54% and GW Pharmaceuticals is up 18%.

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There are 12 comments

JANUARY 3, 2014 3:54 P.M.

H. Craig Bradley wrote:

COLORADO POT SHOPS GET "OFFER THEY CAN NOT REFUSE"

Bill O'Reilly briefly mentioned a few weeks ago on his nightly Fox News show "The O'Reilly Factor" that the Mafia is moving into Colorado to get a piece of the lucrative mar-gee'-wjana action after pot was legalized. Expect the body count to go up if new proprietors of marijuana shops don't willingly sell out to the mob. Nice going, Colorado State Legislature. Tourists should stay away for their own good.

JANUARY 3, 2014 5:12 P.M.

Anonymous wrote:

to funny

JANUARY 3, 2014 5:18 P.M.

John wrote:

Gosh darn, that Bill O'Reilly sure is one smart guy!

JANUARY 3, 2014 5:39 P.M.

Mob Boss wrote:

Way to go Bill, let out our plan. Bill keep looking over your shoulder, because we are coming for you now. when we tell you things in confidince, we expect you to keep them to yourself, and not broadcast them over your show. As a result your "Donations" we have been paying you will be cut considerably, until such time as we make sure you have no more need for them.

JANUARY 3, 2014 6:28 P.M.

hank wrote:

What was stoping them before? I thought the whole point of the mafia was to take advantage of the illegal markets? Since when do they wait till something becomes legal to start business? Bill O'Reily is a jack ass that theory doesn't even make sense.

JANUARY 4, 2014 6:20 A.M.

Malcolm Kyle wrote:

There has never been a drug-free society; the use of recreational, mind-altering substances is an intrinsic and natural part of human existence.

The US National Prohibition Act of 1919 was implemented in early 1920 and ran until 1933. According to the U.S. Census Bureau "deaths from chronic or acute alcoholism" increased 400% between 1920 and 1927.
Source: "Vital Statistics Rates in the United States" by Forrest Linder and Robert Grove
From the exact same data (the U.S. Census Messrs) Linder and Grove found that prior to prohibition (during the period 1907-1920) the rate of "deaths from cirrhosis" actually fell by 52.027%.

The assertion that drug legalization/regulation would bring higher usage rates blatantly ignores what has occurred since the early 1970s. The percentage of Americans who have used an illegal drug has gone from less than 5% to about 40%. The cost of one dose of street heroin has gone from $6 to 80 cents while average purity has also increased. The only drug that has decreased in use during this time is tobacco, which has plummeted from about 65% during World War II to about 20% today. Tobacco, one of the most addictive substances known to man, has never been illegal but many Americans have quit using it for personal reasons that clearly have not been influenced by it's legal availability. They will decide whether or not to use other drugs for the same reasons.

Prohibition continues unabated for shameful political reasons. It cannot, and never will, reduce drug use or addiction.

How much testing do we really need? There have been millions upon millions of humans testing (using) pot for generations upon generations with absolutely not even ONE death contributed to the use. That cannot be said for alcohol, tobacco, prescription drugs, red meat, eggs, milk, soda pop, ect.,ect.,ect. NOT EVEN WATER can make that claim. I am ..........Amazed.

JANUARY 6, 2014 2:42 P.M.

@LaughinPaulRyan wrote:

Medical Marijuana Inc. (OTC: MJNA) does not own any direct THC bussiness. Red Dice Holdings/Medical Marijuana Inc. is a licensing deal only. A licensing agreement grants a manufacturer the right to develop, market and sell approved products (typically leveraging a company's brand name, logo(s), mark(s) and/or licensable assets) to approved retailers in return for payment — typically a royalty and guarantee based on wholesale sales as specified in the license agreement.

Typically, Licensing royalties represent 10% of wholesale sales (5% of retail sales) and are paid to licensors on a quarterly basis.

Medical Marijuana, Inc. (OTC Pink:MJNA) is pleased to inform shareholders and the general public that HempMedsPX™ — a corporate portfolio company of Medical Marijuana, Inc. and the exclusive master distributor and contracted marketing company for CannaVest Corp. and Medical Marijuana, Inc. — represented CBD Simple by PhytoSPHERE Systems — a CannaVest Corp. brand — at the 2013 High Times Cannabis Cup competition in Amsterdam and accepted the Cannabis Cup award for Highest CBD Concentrate. This international judging event featured entries by the most prominent growers, breeders and producers of cannabis and cannabis products worldwide. HempMedsPX™ also represented the winner of the 2013 Seattle High Times Cannabis Cup and 2013 Michigan Medical Marijuana Conference "Green Cup" contests for Highest (hemp) CBD Concentrate.

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Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.